What to consider when changing banks
The British Bankers Association recommends that you are certain that you really want to change before you embark on an exercise that involves everyone you regularly pay money to. If you're moving because you feel you have been treated badly wait until you've had a reply to your complaint. An
apology and explanation may make you feel differently.
All banks are not the same. Before you embark on changing banks make sure that your new chosen bank offers the services you require. First of all decide whether you want to bank at a branch, on the phone, on the internet or a mixture of all three.
You can use our handy bank account finder tool to help you make your choice.
Checklist of things to ask
More than one account
Don't forget you can have more than one bank account - with more than one bank. You could save with one bank, have a current account with another, have a joint account with your husband or wife at a third and have a business account with yet another. It is easy to set up standing orders to pay money from one account to another.
Banks may be better at some services than others so it may suit you to have different kinds of accounts with different banks. If you require any particular services - eg sending money abroad on a regular basis - then have a chat with the staff at the banks you are considering moving to and weigh up which you think offers the best service.
What happens next?
Once you've chosen your new bank or building society get in touch with their local branch or call centre and obtain the name of the person who will help you through the change-over. They will want to know your address and to see some form of identification such as a passport or driving licence - they are required to do this by law.
To check that you are creditworthy they will ask about your main source of income and any credit agreements you have and how much you owe. You must decide who has authority to sign cheques - for example just you or you and your partner. If you want a safe deposit box you need to say who will have a key to it.
Most banks or building societies will be happy to do the administrative side of the move for you. This means arranging for your old bank to transfer all your standing orders and/or direct debit arrangements to the new account. Banks will usually transfer these instructions directly once you have authorised the move but you might want a list of direct debit and standing orders for your own records.
This should all happen within five days, but if you have complicated banking arrangements be prepared for a delay. If your old bank, for example, holds deeds to a house as security for a loan it may take longer and there may be a charge for informing the land registrar. Check in advance how much it will cost.
Keep a check
The crucial point in changing banks is the hand-over period. It's sensible to keep the old account open until you're sure that the new one is running smoothly. All unused cheque books and cards should be returned to your old bank and often your new bank will do this for you. Remember to cut cards in half before sending them back to prevent fraud. Keep a check on your bank statements from both banks to ensure that standing orders and direct debits are being paid - and that payments are not being duplicated.
